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An 11th hour decision to have two extra public holidays this
festive season will be an economic disaster, costing Victorian
retailers millions of dollars, industry groups say.

But unions applauded the State Government's decision yesterday
to proclaim Boxing Day and New Year's Day public holidays, saying
employees who worked on those days would now receive higher penalty
rates.

Boxing Day this year and New Year's Day on January 1 next year
and 2006 were not previously proclaimed public holidays because
they fell on a weekend.

In February, the State Government announced a substitute Boxing
Day public holiday would be Monday, December 27, and a substitute
New Year's Day holiday would be Monday, January 3, 2005 and January
2, 2006.

But yesterday Small Business Minister Marsha Thomson announced
Boxing Day this year and New Year's Day in 2005 and 2006 would also
become public holidays. This means Victorians will be able to
choose whether they work on these days and be compensated with
higher penalty rates if they do.

"The Bracks Government believes work over the festive period
should be voluntary and public holiday entitlements should not be
eroded just because a person works weekends," Ms Thomson said.

But the decision was savaged by the Australian Retailers
Association, the Australian Industry Group, the Victorian Employers
Chamber of Commerce and Industry, the Master Grocers Association
and Restaurant and Catering Victoria.

Australian Retailers Association Victoria executive director
Brian Donegan said the holidays would cost the retail sector
millions of dollars in wages. "A small retailer with five full-time
employees will need to find an additional $1000 to cover their
labour costs in the 2004-05 period alone," he said. "The timing is
remarkable with about 10,000 small retailers expected to have to
meet the additional costs of federal award coverage for the first
time from January 1, 2005."

The Australian Industry Group's Victorian director, Timothy
Piper, said the cost of extra public holidays had not been
recognised. "Union demands have taken precedence on this issue," he
said.

But the announcement was welcomed by the Victorian Trades Hall
Council, the Shop Distributive and Allied Employees Association and
the Liquor, Hospitality and Miscellaneous Union. Victorian Trades
Hall Council secretary Leigh Hubbard said the decision brought
Victoria in line with other states.

LHMU industrial officer Ruth Frenzel said: "It means hospitality
workers, cleaners, security guards - all those people who work on
the actual public holiday itself - will get public holiday rates
rather than normal Saturday and Sunday rates."

SDA state secretary Michael Donovan said the decision was an
early Christmas gift for Victoria's 50,000 Shop Assistants Union
members.